above ofrmth they rise in florence thanks to competition that began 599 days. breaking news changes everything. it is cavuto time. >> steve bannon is out and stocks on the move and dow rebounding from steep losses on when bannon would be leaving and soon after the white might making it official. what is the fallout for the market. i am trish regan in for neil casitto. we'll talk to the congresswoman in a moment but john roberts has the latest. >> reporter: we are learning that this did not happen by happenstance. but it was discussed since john kelly came on board. but it was in recent days that things took the turn and the

press conference that the president gave on tuesday which we will play for you. and the next day when steve bannon himself gave that rather unusual interview. that blockbuster if you will to the american prospect that sealed the deal. listen to what the president said on tuesday about steve bannon. >> i like mr. bannon. he's a friend of mine. he came on very late. i went through 17 senator and governor and won all of the primaries. mr. bannon came on later than that. i like him and he is a good man and not a racist, i can tell you that. he is a good person and gets unfair press in that regard. but we'll see what happen with mr. bannon. >> reporter: the president kind of diminishing the role that steve bannon played in the overall campaign.

saying he didn't come on until he won all of the primaries and any time the president said we'll see what happens, it is usually not good. we are graflt for his service and wish him the best. it is an indication of the power that john kelly wields there in terms of organizing the white house. someone as close to the president as steve bannon was it would have been announced by the president he was leaving, but instead it was the chief of staff and bannon who came to an agreement. what happens to bannon after this? will he go back to running breitbart as he did. or join forces with billionaire robert mercer and go after the establishment republicans that populate congress and the white

house. people who bannon clashed f with in the last few months. that is interesting to see. >> will this get the president's agenda back on track or does he go back to breitbart and stir things up. utah congresswoman mia love. mia, congresswoman love, let me start here by something that came up this afternoon that is going to make any republican really angry and that's the statement by house minority leader nancy pelosi and she said i quote. steve bannon's firing is welcome news and doesn't disguise where president trump stands on white supremist and bigoted belief they advance. the dnc released a statement effectively saying well, you got

one less white supremist in the white house. what does that say to you when they are out there labelling anybody who is part of the administration a white supremist? >> nancy pelosi is going to be nancy pelosi and will it is about power to her and she will make sure she uses going to regain power. as far as i am concerned it is it the american people making sure there are no distractions and take care of health care and tax reform and awful those things that hard working americans depend on us to do. it is the difference of politics to their advantage or policy and that means you are getting things moving and making it better for the american people. >> is this identity politics. is this what they are trying to drive home? >> i don't think that nancy cares about anybody but herself.

you know, i just, this is again trying to make sure you get out of your own way and do what you can for the american people and penning people up against each other is not the way to do this. this is why we as americans need to stop looking to washington to answer all of the questions whether they make us feel angry or not. it is it time to say, we don't need to wait for nancy pelosi to tell us what to do. and look at ourselves and take responsible and what will history say about what we have done. >> i think it is it bad they are trying to play that aspect much identity politics. >> it is par for the course. >> you think so. now, let's walk through what happened. steve bannon is out. do you anticipate he will shake things up at breitbart and perhaps help with mercer?

>> i have no idea. i know bob mercer very well and i know, bob mercer is i think a great person. i have no idea what steve is going to do and at this point, it is not really on the top of my agenda. i repreponderate the 4th district and ready to get back on to the agenda and get rid of all of the distractions. >> it is for you. the distractions. there is a lot of the distractions and that's what the left is trying to play to their advantage. does it make it challenging to a republican law maker who needs to get elected when there is this kind of division. >> as a mother, i don't care. i do care about the future for my children and care about the future for all american children out there and people who don't have a voice and watching adults act like they don't have any

common sense or all about them. i care about what is going to happen when we are so out of control with our spending and so out of control with problems and different things that we can't afford. what are we leaving to our children. and that's what i am concerned about. i have three children depending on me to have some sort of a future to achieve the american dream. >> i got three and mine are, too. this is our future and it is disturbing when you see the state that we are in right now. and i do worry representative, that the left will hit this and try to play the race card at a time when we've already moved so far beyond that and as you say, there are economic priorities. it is good to see you

representative love. >> good to see you, too. >> what does the shake-up for the white house mean. charlie has been following it closely. are you surprised by this? >> no, i reported last sunday, barring a miracle he was likely out. i don't know if i buy the notion that he resigned two weeks ago. he might have resigned and the president didn't accept the resignation and the bannon's fate was sealed with the american prospect story. >> you think bannonmented to be fired. he basically said we tonight have military option. >> by the way, he was accurate. >> you don't want to say that as a member of the administration. the president said we are ready to fight. >> and i think he was done with that one.

you can't articulate american policy through a chief advisor. steve bannon is a smart guy. net- net as of now, trump could change. the administration becomes less protectionist and more globalist and tax cuts for the wealthy and corporate america. >> that's not going to sit well with steve bannon. >> that might be good for the markets. look at the way markets traded occupy him leaving and the wall, that is probably on the back burner again and they traded up. at the end of the day, they were down 76 points. why is that? >> most investors know if there is a problem with a president who said crazy stuff sometimes and particularly that is most

business leaders very bad speech about charlottesville and the remarks on wednesday, it is the president. it is not steve bannon and the president is still the president. i say this charlottesville episode hurt the president with the business community. >> we saw that, charlie. but you know what, it is time to move on and the democrats are not moving on. instead they are labelling steve bannon the white suprimist. >> i know steve bannon and he is not a white supremist. he has labelled breitbart as a tool for the altright. but my point, the president looks feckless and you have to expect the democrats as the republicans would do to attack the other side of the party. you have to expect that. >> spiralling down ward?

>> he's giving them the rope. >> and they are taking it. >> what do you expect them to do. >> i don't think this would help them. americans and certainly republicans are not racist. and this is not who we are as a country and you keep playing that, it will not work for you. >> of course, i agree with that. the trump administration is in disarray. a president said crazy stuff and doesn't understand certain things and it is hurting his agenda when he gets that the agenda it will not matter what nancy people people says. >> it you know, there is a lot of good things to be excited. economy doing better. and 22 most days on the market and need to move forward. >> i want to see it. i went to missouri, show me. >> more on the market fallout

over the steve bannon move from the white house. and whether or not the agenda will move forward and the latest for the manhunt for the suspect in barcelona, spain. clearly it was a large cell. and rca had warned them. coming up next. in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. and it's also a story mail aabout people and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you

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>> officials on alert over here as the massive manhunt in spain following two terrorist attacks that left 14 people dead including one american. five suspected terrorist killed. and officials believe they are part of a larger terrorist cell. get us to speed if you would benjamin. >> reporter: good evening, trish. at 5:00 p.m. yesterday the white

van barrelled through the pedestrian and killing 13 and we learned among the did theed is he was here for his first wedding anniversary. and sources show it is a wider network. eight hours after the attack. another attack took place 62 miles south of here. in that the kimming one woman. the police shot all five of nem prospect that are trying to find the driver of the white van. his name is ma osu.

>> and they think it is it part of a wider cell. the sploegsz of a house an hour and half from here. it is looping and it is that m there are concerns and people out and b. you can see behind me, the sfreet and sfree is not to there is a attorney that someone else might be there. bullpen making sure the tefrs terrorist it's >> authorities believe that the terrorist in spain former fbi

assistant let me qu. didsh are when they mag would to operate under the radar. >> glad to be with you, trush. there is many on the globe. it has been going on for a long time and it will not change until the west exchanges its tactics. we have let thousand s and thousand says in our country and had no border >> let me ask you, mr., people say there is a difference. aniel. the left can push to get more people in the country bullpen with president trump election

that tis banded to a certain extent. havee run the up weep don't know who nieces poach how many years will we put up with this type of stuff. ? snow we if we are going to we for this may continuement we are getting and talked about having ieshg sis follow we university are to mrook it mrvps so what

would you are you pupped inform bee look harder at you whether you are in this rot or no >> no,y baptist did've in fvrpt vpt we know who believes in jive yoif scombchl rv go and yet, combrernlts scombrfrment. and we do nothing about it. when will it chaefrm in if follow network and if i want to socializes with people woman's

bad lem and'ds sfm. at any point sdmrvment what happen kind much rights do we need to change those righteds? >> you know, we live in such an incredible hypocritical time. i just saw nancy peal peal talk about guesting the out house in. to do combhg terribly n. bithe time will diagram we don't have to put our constitution in flvpt that will happen with mass

killing and then it will happen. >> oh, thank you for being here. steve bannon out and market rally back in. we'll have the nee award winning design. award winning engine. the volvo xc90. the most awarded luxury suv of the century. this august visit your local volvo dealer to receive sommar savings of up to $4,500. this august visit your local volvo dealer tais really quite simple.est it comes in the mail, you pull out the tube and you spit in it, which is something southern girls are taught you're not supposed to do. you seal it and send it back and then you wait for your results. it's that simple.

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>> stopulosising ground after initially rebounding. steve bannon no longer part of the white house team. so where do we go from here. jerry, starting with you. and then, end of the day off. why? >> i think you can overstate the impact of the bannon impact or resignation. 90 point change in the dow on bannon on that news. but people in the stock market are saying. maybe this will get us back on

the agenda and looking for tax reform and health care and we like that. and now,ment reason we are down. i can't tell you. this is august. and in the end of august. they are not paying attention >> garry? >> i disagree. markets do care. they have eye and ears and a voice and it moving based on confidence and leave no doubt with everything that's happened and confidence is waning here. i don't think the bannon thing matters that much. we have to look forward. and if they can't get the agenda moving forward, markets will go lower. if i am president, i set out a sfeech to the whole united states in prime time setting the record straight and try to get things on the right track again. >> don't earnings matter

washington is a big deal. but in the end of the kay the company relies on more than that. >> and fuare of the belief like i am that a good portion of the market rally eight years of being a socialist state. if that doesn't get done markets will react the wrong way. >> is tax reform going to happen. >> i don't think so. he made mcconnell upset and corker who is a good friend is out. there has to be mended fences and i would like to see votes getting done and we may be starting from square one. i will keep my fingers crossed. but it is it august 18th and how long have we talked about this.

>> for a while. but you know, he's still only been there a half a year. >> we'll given him that. >> and there is speed bumps along the way. you know, keep in mind. republicans campaign on repeal and replace. and tax reform. and so they are looking like empty handed if they don't get it done. >> what does steve bannon's departure mean for the president's forepolicy. we'll have that after this. beg bonus check every six months i'm accident free. because i don't use my cellphone when i'm driving. even though my family does, and leaves me all alone. here's something else... i don't share it with mom. i don't. right, mom? i have a brand new putter you don't even know about! it's awesome. safe driving bonus checks, only from allstate. sometimes i leave the seat up on purpose. switching to allstate is worth it.

>> steve bannon out at the white house and how will that impact donald trump's foreign policy. we'll see you right here.

>> steve bannon suspect out and after saying the u.s. does not have a military option for north korea. that caused concern because the administration maintained that we did have military options and that we are ready with military options. what does it all mean for the president's national security policy? we'll have rebecca. good to see you. do we have a military option for north korea? >> absolutely. steve bannon was wrong to say that and that is not true. that undermines the president.

and i think it was a mistake and i don't think he intended to be printed the way it was. and the president's agenda and foreign policy will be on course with steve bannon out of the white house. america first. and never the grand ideological agenda and difference between steve bannon and hr mcmasters. but mcmasters has the president's trust and we are in good hands with what the president wants to see for the foreign policy. nso tough with the crazy people such as we have in north korea. continuation of that. will they shot do you know what steve bannon alleged? >> it would be wise for the president to stay his course.

there is mum blippings that steve bannon does not reflect the administration's. and i don't think steve bannon's comments reflect the administration's position on this. america has a set of principles. american people security comes first. and treaty and relationships with other people are means to an end. and that is to further american security and make sure the world is a more stable place and that is where the obama under mined the american advantage. we have a big mess from middle east and north korea. >> and we watch it all unfold in spain and in finland there was a knifing attack. and looking to see if that is islamic terror. and shifting now to what they

need to do in terms of yet you can suso many respects that the steve bannon was try to fight to a publicidation like breitbart. and that it seems as if he is leaving on amicable terms with the president and he resigned and was not fired. we'll see what he does. that were supporters of president trump. michael anton is a senior national security official. and he told a power line blog that the obama hold overs in the

counsel miskooshg otherwise. people are not insubordinate to tremendous and and priechd a 41ing presence in the worltd woit we are in good heads. nrngs bo bot rvrp she wrote on which fac fac she is refusing to step down. should this be making mr head hiens? wel canned pagsz respiratory go

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>> a missouri senator under pressure to resign after posting and deleting a comment facebook. the comment in which she hopes for president trump's assassination. the state senator backed off the vote but complains about president trump's comments in charlottesville. the secret service is investigating. she said she does not plan to resign. >> yeah, it is it a sad instance of epidemic sweeping the nation. trump derangement syndrome.

it is it unbelievable. trump came out on charlottesville. he condemn it. you may not agree with how he did it. and that is fine. but to hope for his assassination? there should be a full fledged apology. on the secret service end, that has to be investigated. they can't just say it is a joke. two components, trish. that she knowingly made the threat. and willfully. was she willing to carry it out. that's where you get hung up. >> she's trying to inspire others to carry it out? how is it that those members of the left think that it is okay to label the right as they are labelling them. and it is not only this woman calling for the assassination. president. but now nancy pelosi out there

is aing that steve bannon is a white supremist and all members of the administration are white supremist and this is their mo, and what they are trying to do to play the ident ipt politics card. >> you are right, trish. it goes back to critical theory. the idea that conservatives don't just have bad ideas but are bad people. that is an argument. we disa grow on taxes and we don't think you should be shut down. you have a right opinion. we think they are wrong. and i am glad you brought up. will she face legal sanctions, probably not? but there was a cultural sanction against this. and we didn't do it with

president obama. because the media and culture will embarrass you. >> and to label bannon a white supremist. they are dangerous labels. we have come far as a country and they are the worst things you can possibly say. i was critical of his response. and i wished he was not baited by the media as he was. and the left is taken it to another level and ratcheting it up. >> they don't have anything else, trish. they feel like they are victims here on the left. they feel like the election was stolen from them and when you file like it was won immorally it sanctions the types of culture. hopes for assassination and calling people racist. is there any worse thing to call somebody in america? they know it stippings. but don't know it is true.

they think ray they are epititled to a electoral victory and it was stolen. it is madness. and the lest lost their mind. and and what the law ha she may have gotten fired up deputy and department motional. and she has to keep the dialogue on the right page, not to level these keepeds of >> this is the the. calming for the hope forever assassination

>> or uses material is a disgrace. she's free to disagree with trump. bullpen hoping for a assassination, you are right. it is awful and not only a legal sanction but cultural sanction them and condemn it on a mass scale. no place in america for this. >> she should know better and hopefully we'll see an apologize. thank you >> new reports of the ria wonk well of a terrorist tack its monthses ago. monthses ago. canned leer notebooks! one cent! rulers, glue and 12-pack pencils! all one cent each! hur to office depot office max! ♪taking care of business if they knew just howers rich they were.ed the average american home value has increased $40,000

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>> a new report said the cia warned spanish police two months

ago about a possible terrorist attack in barcelona two months ago. this before the terrorist attack that killed 13 people. i want to ask former cia counter terrorism officer, buck, what do you think they knew? >> it depends on the threat. it is just chatter. and they will pick up somewhere that this may be one of a dozen targets talked about and picked it up from a source that is passing on a rumor. but because it is threat reporting, you have to make sure you move it along. and unless you have a sense of timing and who may be involved very difficult to prevent the attack. the more reporting about the cell.

eight individuals suspected to be tied in the attack, it could have been much worse than it was. and there was terrible carnage and loss of life, but it could be worse loss of life. >> if members of the cell are not out there. what will do on the next move. they are going after them to see now. >> whomever is tied to this and out there, they will try to make a last stand and if they can add to the total of the today and wounded that they put together with the attacks. >> i think we'll look at connections x. did they have good trade craft. and good at preventing the authorities from looking into their affairs. were they not slops they are running an explosive factory and

were it not blowing up by themselves by accident. they could have been create vehicle born improvised explosive devices and giant mobile bombs and that seemed like it was the plan that could kim thousands had they deployed them as they were seeming to planning to. >> there is little can you can do once it gets to that stage. and even in you can't just necessarily shut town the treats what i'm you try to do? >> you run informants in

jihadist circles. finding the terrorist is more important than trying to prevent vehicle attacks in the city and country. that is it a major component of all of this and what we are going to see probably ties to established jihadist outside of spain. and probably communication if not directly with the islamic state. people with direct ties to the islamic state. and they may have and this is my analysis based on the building of the explosive vehicles. they may have had help at stages and had they not gone awry with this they could have kill would many more people. >> steve bannon is out. and now the media is saying, him being on the outside could be more for republicans. can the white house ever get a break? we'll have more on this, next.

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>> trish: all right. let's get back to the late us on the white house shakeup. steve within a none suspected as being the source behind some of the white house leaks. could leaks be a thing of the past now that he is out? washington examiner's white house correspondent sarah west wood joins me now with more. sarah, that's my first question for you. does this mean that some the leaks might stop? i guess if he was leaking he wasn't the only one there, though. >> you know, leaks have been the reasoning behind a few of the dismissals that we have seen from the white house leaks were one of the stated reasons given for deputy chief of staff katy walsh's ouster. earlier this year it was the reasoning -- part of the reasons behind former chief of staff reince priebus ouster last month. now it's one of the reasons being floated for steve bannon's ouster. the truth is a lot of the senior white house aides do leak now and then to further their own purposes to achieve their own goals. if bannon did that, he wouldn't have been the only one. and it is certainly not going to stop the leaks from

this white house. there are a lot of senior staffers still present. tissue tissue let me ask you this, now that steve bannon potentially goes back to breitbart, is he going to be able to more influential and frankly more disruptive to this white house by rallying so many members of the base that may take issue with some of the policies or some of the people that are in the white house right now? >> remember, for months before bannon joined the trump campaign about a year ago, he was extremely influential in helping trump gain so much popularity in the g.o.p. primary and in the general election. when he was just the chairman of breitbart, when he wasn't affiliated in an official capacity with the campaign. that's the same sort of situation that you will be seeing now. he will be able to push >> trish: trish could help him. >> yes. he could help him. >> trish: or, sarah, he could hurt him. >> he certainly could, and he might if the president seems to be going in a direction that conflicts with bannon's views. bannon is one of the only

top voices in the white house that's the president to pull back when it comes to syria, when it comes to north korea. he is a noninterventionist. some of the top voices in the white house national security advisor h.r. mcmaster might advocate the opposite of that approach. if you see the president start to take that advice, bannon is probably not going to sit back and let that go unchallenged. >> trish: well, you actually saw that you know, on the breitbart site, for example. one that has been extremely critical of mcmaster. and so, in some ways, he may have been influencing breitbart from inside the white house. now he will have the opportunity to influence the website, if he goes back to it, directly, which could, i agree, put much more pressure on members of the administration, including the president. with all that in mind, sarah, what does it do to the party itself? because you have this sort of traditional republicans on one hand that play by the old set of rules. and then have you got steve bannon and members of the base that sent donald trump

to the white house for a reason. they wanted disruption. they want to shake things up. >> there are a lot of allies of the white house right now who are a little nervous that bannon's departure could mean that president trump is going to stop pursuing the campaign proposals that were most popular among his voters, like the border wall. steve bannon was one of the top voices inside the white house for that policy. there's a fear that because president trump is surrounded by a lot of people who you might see in any other republican administration, that president trump will give up on some of those priorities, that they won't be at the top of his list. so that is a legitimate concern. >> trish: we'll be watching. thank you very much. good to see you, sarah. >> thank you. >> trish: wee have much more on this tomorrow morning the agenda where is it going. the very latest on the terrorist situation. we will be monitoring dueling protests scheduled to take place in boston in wake of charlottesville. it's all kicking off i will be here at 10:00 a.m. for a

live cost of freedom. i'll see you there. bret baier is next with a special two hour edition of "special report." see you tomorrow. ♪ >> bret: this is a fox news alert. >> i'm bret baier in washington. this is an expanded two-hour edition of "special report." judgment day for white house chief strategist steve bannon. he has been touted as someone who helped orchestrate candidate trump's white house win much to the chagrin of president trump. he has been tied directly to several internal personnel battles inside the trump white house. a self-described economic nationalist, he had a white board in his office with all of the promises candidate trump made on the campaign trail, pledge pledging to keep white house policy to those promises. he was even economically portrayed as the grim reaper. the political harbor jerry of